Decision 2020

We said goodbye to a troubled 2019 crop season and are looking forward to what 2020 will bring.
After a year of record rainfall that forced many producers to plant late in unfavorable conditions, or not plant at all, many are predicting a repeat in the spring. The weather, however, is unpredictable and we need to be prepared for whatever Mother Nature decides to throw at us.
It’s time to protect your crop against an uncertain future.
Ask yourself these three questions before you make that all-important crop insurance decision:
•What are my costs of production?
•What perils do I want to protect myself from?
•Have I done my research and understand the options available to me?
 
What are my costs of production?
How much coverage does a producer really need? The cost of land is the largest expense. Whether you rent or are a landowner, consider the cash rent value of your land in your expenses.
Seed, chemical and machinery vary a lot from one producer to another.
Am I hiring labor to plant, harvest and spray? Will I include a wage for myself? Do I work for free? Insurance cost is also a consideration.
 
What perils do I want to protect myself from?
 
Multi-peril Crop Insurance coverage protects against natural causes of loss such as drought, excess moisture, hail and wind.
Hail insurance includes coverage for hail, vandalism, transit and storage. In many cases you can add wind endorsements to your hail insurance plan.
Wind coverages available include green snap, lodging, loss of production and extra harvest expense.
There are many different ways to build your plan of protection for the upcoming crop year.
 
Have I done my research and understand the options?
Finally, research is the key to protecting your investment. I contact each of my clients to review their coverages for the upcoming season.
It is vital for the producer to understand the options available to cover expenses and protect against the weather.
Insurance is supposed to give you peace of mind, and that is only possible if you understand the coverage that you signed up for. 
Do you have a need for increased prevent plant coverage? Maybe you would like to extend the planting season by 10 days without taking a hit on your guarantee. Do you need coverage beyond the 85-percent level offered by the Multi-peril crop insurance?
All Approved Insurance Providers (AIPs) offer the same coverages and the premiums are identical, but all named peril and hail policies are not created equal.
You need a coverage level that will protect you and your family, but not a premium that eats all of your profits, in a year that you are able to produce a normal crop. Evaluate your risk and decide which products suit you best.
 
March 16 is deadline to make decisions and adjustments
Now you are ready to start the decision-making process. If you’ve already chosen your coverages for 2020, it’s not too late to make a change.
The deadline to sign up for spring planted corn and soybeans in Minnesota, South Dakota and Iowa is March 16, 2020 (the deadline is March 15, but it falls on a Sunday so it is extended to Monday this year). 
My advice is to know what you need and then go out and get it. An experienced agent is key to understanding the options available, and how to put a plan together that does what you need.
Remember, ask questions, understand your options and make the decision that meets your needs.
Have a safe and successful 2020.